Real-Time Analytics is predicted to take the lead in the Big Data industry as they become the better option when it comes to how Data Analytics should be handled and consumed. Truth is, no matter what size your company is, Big Data will always be in the picture. The best purpose for your data is to better understand your customers and their behaviors so you can cater to those needs and desires.
When using Data Analytics, you would have to gather the reports (sometimes per department, which could take some time) and create a comprehensive report about your business. As a result, once you have come around to fixing it, the data had already changed, rendering your data obsolete and your efforts worthless. You’d have to start over.
On the other hand, having Real-Time Analytics will let you have the most up-to-date information at your fingertips as most Business Intelligence (BI) systems of this type generate the data within seconds after the event occurrence. This means that you will not only save time you would’ve spent waiting, but you now have the chance to do some preventive measures instead of merely corrective ones.
But what exactly does real-time analytics bring to the table?
Why is it Better to Use Real-Time Analytics?
Increase of Potential Profit. Most especially in business, the availability of real-time data could mean conservation of labor and resources, which in turn would mean more profits.
Detection of Time-Sensitive Concerns. Traditional Data Analytics BI needs to collate many results first before a final conclusion is prepared and ready for consumption, hence provides historical data. Meanwhile, Real-Time Analytics need only the latest input to generate a status report or to detect arising problems.
Let’s apply to a scenario. Say you just launched a product and you’re using a BI system that gives you real-time analytics. You will see the sudden spike of page visitors, and thus you can avoid having a server crash. You can do preventive measures as soon as you see the traffic spiking up. You will have time to contact your hosting provider to add more bandwidth.
Imagine what would have happened if you only had traditional data analytics to utilize. Your site would have crashed, and while you may be able to fix it, you will only be able to know what went wrong after you have collected the data — some time AFTER the event occurred. Your solutions will only be applied after the fact with the goal of not letting it happen again.
Efficient and Effective Use of Resources. Choosing which eCommerce Analytics tool to connect your business to is a huge and complex undertaking. Aside from having the latest and most up-to-date information, having the right eCommerce Analytics tools will save you time and effort — these resources are the most significant as they aren’t renewable and cannot be recovered. Moreover, you must also have the right platform so as to be able to interpret, analyze and transform the data you gathered into something useful and actionable.
Huge Impact on Workflow. In line with the last point, using real-time data could help determine what processes need improvement, especially when combined with key performance indicators. This can help with preventive and corrective measures.
Strategy Development to Boost Conversions. You can also zero in on weak areas of your sales funnels where you start to lose potential customers. You can also use the data on online consumer behavior to better drive conversions. Competent business models can be expected from better insights produced by real-time data. Better data management can be expected, and helps you understand which of the data you’re receiving is most important for your business, helping you formulate better marketing strategies. This, in turn, would lead to business growth.
Real-Time Analytics in Action
While using traditional data analytics could still be productive and effective, it won’t be as efficient when compared to real-time. Here are some ways that Real-Time Analytics are being utilized for.
User Retention Analysis
Your products and services may not always be enough to keep users on board. You have to know what makes them tick — what they want (and need!) — to make them stay, and keep using your product or service. For instance, using real-time analytics to identify consumers who regularly return to your online store without buying anything, could help you examine what you could do. These people are giving you their attention and time but hasn’t converted to a sale yet. You can determine patterns and trends and these will provide meaningful insights as to what courses of actions you’ll need to employ.
Traffic refers to visitor frequency, or the total number of visits made by unique users to your store page. Interpreting traffic identifies the trend of new and returning visitors. Knowing which type of visitor you are most exposed to could help you plan and craft better campaigns that are more suited to each type’s needs.
These refer to the categories of which you online traffic sources falls on, namely Direct, Organic Search, Paid Search or Referrals. Distinguishing which channel provides you more traffic is practical and strategic. This lets you focus your efforts on those that yields satisfactorily.
With this type of analysis, you’ll get a deeper investigation on how your visitors interact with each stage of conversion. Starting from product page views and adding the items to their cart, to checking them out and processing their payment, you can pick the process apart to pinpoint which part needs improving.
Product Performance Analysis
Having Real-Time Analytics, you can view orders as they happen. Looking into each product’s performance can help identify trends and understand your consumers’ purchase pattern. If you see a product with consistent sales, you can then assume (or even observe) that your inventory stocks are going low. This observation could save you a lot of time as you can start ordering for the restock before the product is even sold out. Same goes with products being viewed more than usual or being wish-listed more than others, as you can use this finding as a basis of how much you will need for the next restock. Information from this analysis could be used to create your own best sellers’ list, and which needs more marketing efforts.
Site Search Analysis
Utilizing Real-Time Analytics for site searches can help you catch opportunities while they are hot. If you are able to catch which items are most searched, you can build on that trend and maybe create a timely promotion.
If in case you don’t offer the items that are most sought out, you can use this opportunity to quickly find a way to offer it, chasing the demand it currently has. This also gives you the opprtunity to fix any typos that are causing you precious potential conversions.
While switching over to real-time analytics would need some thinking over, but knowing all these should help you deciding the worth of the investment. Want to know how to use real-time analytics for your business? Reach out to us here at Kevy.